GST on Flight Tickets: Domestic and International Rates

GST on flight tickets is considered as a vital factor for budgeting. This helps to specify the final cost for air travel in India. So, knowing these taxes will help you to manage your travel costs. The rates generally differ for Economy and Business Class tickets. Economic class has a budget friendly rate which is 5%. In contrast, business or premium class tickers have an 18% rate. In this blog, you will get guidance on the GST rate on flight tickets.

GST on Flight Tickets

GST on flight tickets usually has an 5% rate for economy class. In contrast, premium economy, business, and first-class tickets attract an 18% GST. The rates became effective from 22nd September, 2025. The 18% rate has increased from the 12% rate. The changes have made air travel affordable. The changes have increased taxes on premium travel.

Below is a table showing the GST rate for Domestic and International Flight Tickets:

1. GST Rate on Domestic Flight Tickets

2. GST Rate on International Flight Tickets

So, this means both domestic and internal flight tickets has the same GST rate.

Pre-GST and Post-GST on Flight Tickets

GST on domestic and international economy class air tickets will remain same that is 5% rate. In case of the premium economy, business, and first-class tickets has increased from 12% to 18%. These changes are came effective from September 22, 2025. Tickets bought and paid for before this date will still have the old that lower tax rates.

Below is a table that shows a clear understanding:

Before the introduction of GST, there were many taxes on flight tickets. These includes AT, service tax, surcharges, airport fees, and CUTE fees. The service tax is called the main tax for flight tickets.

Here is the table that shows the service tax rates:

Comparison of GST on Flight Tickets

Below is the table that shows the comparison of prices regarding pre and post GST:

Pre-GST for Flight Tickets

Here is a Pre-GST for flight tickets:

Post-GST for Flight Tickets

Here is an overview of the post-GST rate for flight tickets:

What is the Calculation of GST on Flight Tickets?

Here are the steps for the calculation:

 Step 1: Identify the Base Fare

The base fare is called the ticket price before taxes or additional fees. The first step allows you to identify the base fare.

Step 2: Determine Applicable GST Rate

You must find the right GST rate. It includes:

a) Economy Class (Domestic or International): the rate is 5%

b) Business or Premium Economy Class (Domestic or International): The usual rate is 18%

Step 3: Calculate the GST Amount

Next, you need to calculate the GST amount. So, here is the formula:

a) Economy Class: GST = Base Fare × 5%

b) Business Class: GST = Base Fare × 18%

Step 4: Add GST to Base Fare

The total ticket price is the base fare plus GST and other fees, like airport charges.

Step 5: Multiple Segments/Components

GST mainly applies to the basic fare. There may be other fees that are not taxed.

Step 6: Verify on Ticket

Airlines give a clear list of the ticket cost and GST on the receipt. So, you need to check this for a proper GST calculation.

Step 7: Claiming Input Tax Credit (ITC)

You need to give your GST number while booking to get a proper invoice for ITC. This is specifically for business trips.

Procedures to Claim Input Tax Credit (ITC) for Flight Tickets

Listed below are the steps to claim ITC for flight tickets:

Step 1: Provide Your Business GST Number during Booking

Firstly, you need to give your business GST number while booking a flight ticket. It allows the airline to issue a GST invoice for your records.

Step 2: Get a Detailed GST Invoice Post-Flight

This step allows you to request a GST invoice from the airline after your flight. The invoice details can include:

a) Invoice number

b) Date of issue

c) The details about Airline’s Name and GST number

d) Name and GST number of your business

e) Flight details (origin, destination, and date)

f) Total amount

g) GST amount

Step 3: Maintain Records of Invoices and Itineraries

You must keep a copy of the GST invoice and the flight itinerary together. You must keep a copy of the GST invoice and the flight itinerary together. It will help to check and claim ITC during audits or reconciliations.  

Step 4: Claim ITC in Your GST Returns

Next, you can use the GST amount on the invoice to claim ITC in your GST returns. Filing this claim correctly helps lower business travel costs and improve tax benefits.

Conclusion

Every traveler must understand the GST on flight tickets in India. This helps them to plan their journey cost. It also helps to avoid extra costs. An Input tax credit can be claimed for the business trips. This applies to both economy tickets and Business Class. So, always stay informed about the latest GST rates and rules. If you want to know more about GST, get in touch with Online Legal India.

FAQ

Q1. What is the current GST on Flight Tickets?

The current GST on flight tickets are:

1. Economy Class: 5% GST is charged
2. Business, Premium, Economy or First Class: 18% GST is applicable which is (increased from 12%).

Q2. Are GST on Flight Tickets for domestic and international flights taxed differently?

No, GST on flight tickets for domestic and international flights does not taxed differently. As per the GST system, both follows the same and class-based tax structure. Economic classes has a 5% rate. In contrast, Premium or Business class attracts an 18% GST rate.

Q3. Does businesses claim Input Tax Credit (ITC) on flight tickets?

Yes, GST-registered businesses can claim Input Tax Credit (ITC) on flight tickets.

Q4. Has the GST on Flight Tickets for Economy increased?

No, the GST on Flight Tickets for Economy Class has not increased. So, it remains 5%. The government keep this rate low for affordable air travel.